Frequently asked questions relating to Intelligent Finance transfer of equity

• I am under the impression we would need at least AP1 and TR1. Is this true?
• My mother died half a year ago leaving a mortgage-free property to me and my half brother 50:50. Having continues to reside at the property, there was a provision in her will saying the propertycould not be sold for 2 years following her passing so he could reside there for a prescribed period. He now says he would like to remain in the house beyond the prescribed period. We have discussed a transfer of equity. Am I right in saying we'd get a valuation then he'd get a home loan in the usual way to purchase my equity?
• Am I best advised cancel the direct debit for my mortgage with Intelligent Finance once a date for my remortgage and transfer of equity has been agreed?
• I co-own a property in Winchelsea , with a Intelligent Finance mortgage with my ex partner. He and his fiance are going to buy me out. We had the go ahead from Intelligent Finance to substitute my name with hers. The transfer of equity needs to be done by a conveyancing solicitor for Intelligent Finance (supposedly). In order to save fees can I deal with the Land Registry change?
• My friend and I got a joint mortgage with Intelligent Finance on a house about a year ago. I am now thinking of purchasing a flat on my own and my friend would like to buy me out. Assuming we can agree a price what happens next? Would there be any potential issue with Intelligent Finance with him being on the hook for the total loan rather than only part of it?
• How do I go about adding or removing names (transfer of equity) to or from my Intelligent Finance mortgage account?
• Have recently split up with my ex of thirty years. I'm now living with my parents again and she wishes to stay in the property and buy me out. What portion am I entitled to. Is it 50% of the equity after paying off the Intelligent Finance home loan? I assume proper valuations are required but I really need to be sure that I'm getting what I am entitled to

Information that may be required from your conveyancer could ask in relation to your Intelligent Finance Transfer of Equity

General Advice to read in in addition to the above Intelligent Finance transfer of equity Advice :

Tax and Legal

There may be various tax and legal implications when transferring equity for your property. You should always seek the advice of a solicitor on the Intelligent Finance conveyancing panel and accountant before transferring equity.

Transfer of Equity Conveyancing for Leasehold properties

Should the tenure of your property be leasehold, the lease may have a requirement for notices to be served and that you have a license to do so from the freeholder. If such conditions are not strictly observed you may be in breach of your covenants under the lease. This could trigger the freeholder taking enforcement action against you.

Indemnity Insurance

If the transfer of equity is made as a result of an Order of the Court, then Insolvency Indemnity Insurance is not required. In other cases, where a property is being transferred at less than market value between joint owners, an Insolvency Act Indemnity Insurance policy may be required. This is something that that your conveyancing solicitor will check with Intelligent Finance This is because, if the outgoing party is made bankrupt in the future, their Trustee in Bankruptcy could argue that they had transferred the property in order to avoid their creditors and apply to the Court to have the transaction set aside. If this happens, it could affect your lender or a future buyer from you as they would lose the property and the lender may not get back what they have loaned to you. The Insolvency Act Indemnity Insurance policy only protects lenders such as Intelligent Finance or future buyers from you. If there is no mortgage and the outgoing owner is made bankrupt, there is a risk to you that you could lose your home if the transfer is set aside. The cost of the Insolvency Act Indemnity Insurance policy is dependent on the market value of the property at the time of completion of the transfer of equity conveyancing.

Preparing the Transfer of Equity with a Intelligent Finance Mortgage

When it comes to preparing the the Land Registry documents your conveyancing solicitor should in the ‘consideration’ panel choose the first option, if consideration is given; otherwise ignore the consideration panel altogether.

If Intelligent Finance is joining in the transfer to release someone from liability, put the release in the ‘additional provisions’ panel if someone is entering into a covenant relating to the charge, place it in the ‘additional provisions’ panel stamp duty land tax is not payable when there is no chargeable consideration for the transfer (Schedule 3, paragraph 1 of the Finance Act 2003). In the case of a transfer subject to a charge (even if the transfer is by way of gift) or if a property has been transferred for no value and there is an associated discharge, HMRC would view this as an assumption of an existing debt by the purchaser (Schedule 4, paragraph 8 of the Finance Act 2003) and stamp duty land tax may be payable if you wish you may state in the ‘additional provisions’ panel that ‘This transfer is made subject to a charge dated… in favour of…’

On form AP1, your lawyer should describe the transfer as ‘transfer of equity’ to assist Land Registry staff.

Content on this webpage is for general information and only applies to England and Wales. It does not constitute advice for members of the public who should contact their lawyer,mortgage broker, insurer and accountant for specific advice relating to transfer of equity. Whilst we endeavour to keep the information up to date and correct we do not make any representation or warranties of any kind about its completeness, accuracy, reliability or suitability. Any reliance you place on the information is strictly at your own risk. Lexsure will not be liable for any direct or indirect loss or damage arising out of or in connection with the use of this information.